Google has just announced another setback in its plan to phase out third-party cookies on Chrome, citing challenges encountered during the testing of programmatic ad markets.
Despite initial hopes to implement the deprecation of cookies by the end of the year, Google's engagement with U.K. regulators has led to another delay.
In a statement, Google acknowledged the ongoing challenges in reconciling feedback from industry stakeholders, regulators, and developers.
It also emphasized the importance of giving the U.K.'s Competition and Markets Authority (CMA) enough time to review evidence including results of industry tests, which market participants will provide by the end of June.
"Given both of these significant considerations, we will not complete third-party cookie deprecation during the second half of Q4," Google wrote.
Google's Attempts at Cookie Deprecation
Earlier this year, the company initiated a countdown by disabling 1% of cookies on Chrome and introducing Privacy Sandbox as an alternative for ad auctions without personal data sharing.
Before this, it announced plans to phase out cookies by 2022, eventually pushing its target back by one year, and then another.
Needless to say, concerns persisted over Google's dominance in the ad space and its potential impact on advertisers' targeting and measurement capabilities.
The delay in Google's Privacy Sandbox timeline will not affect the ongoing testing of cookieless traffic on Chrome, according to a person familiar with the situation.
The CMA has been overseeing the transition and is the ultimate decision-maker on when Google can proceed. However, Google's most recent quarterly update on its progress with U.K. regulators indicates that it's currently off track.
"We remain committed to engaging closely with the CMA and ICO and we hope to conclude that process this year," Google said in its announcement.
"Assuming we can reach an agreement, we envision proceeding with third-party cookie deprecation starting early next year."
Ad Tech Developers Urge Longer Testing Phase
Ad tech developers have expressed challenges in adjusting to Google's proposed changes, while the industry as a whole is seeking more time for adaptation.
The Internet Advertising Bureau (IAB), an ad trade group, previously urged Google to extend the testing phase due to concerns about the scale and duration of the tests.
"If we’re not satisfied we can resolve the concerns, [we can make changes] to effectively delay the implementation,” CMA Director of Digital Markets Unit Craig Jenkins explained at an IAB Tech Lab event last March.
To curb these challenges, the tech giant previously introduced Meridian, a marketing mix model (MMM) tool designed to help marketers adapt to the cookie-less future.
Despite these efforts to address these concerns, issues persist with serving different ad formats within the Privacy Sandbox, particularly with video ads, as noted in a report by the IAB in February.
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Editing by Katherine 'Makkie' Maclang